the bulgarian investment immigration program was introduced to facilitate foreign investments in the...
TRANSCRIPT
• The Bulgarian Investment Immigration Program was introduced to facilitate foreign investments in the local economy
• The Program provides non-EU individuals and their families with the opportunity to receive a permanent residency permit
• Key features of the Program:– Minimum Investment of EUR 307,000 for long-term residency and EUR 512,000
for permanent residency for a period of 5 years– Investor receives right to reside in Bulgaria– After five years, Investor has the right to apply for Bulgarian citizenship– During the whole period the Investor benefits from the position of Bulgaria as a
EU member
The Bulgarian Residency Program
• Passport-free movement within Schengen countries, starting from 2013• Each application extends to the Investor, spouse and children under age of 18• Access to top universities• Participation in the national health care system• Convenient geographical location - between Europe, South and Central Asia and Russia• Lowest corporate and personal tax rates in Europe (10% flat rate)• Stable financial and political environment• Lowest business operational costs in Europe• Free trade within the European Union• Fixed exchange rate - the local currency is pegged to the Euro• Bulgaria is expected to adopt the Euro by 2015
Program Benefits
The Program is based on the following legislation:
• Directive 2003/109/EC concerning the status of third country nationals who are long-term residents;• Foreigners in the Republic of Bulgaria Act;• Bulgarian Personal Documents Act;• Law for Encouragement of Investments;• Law for Bulgarian Citizenship;• Ordinance for the implementation of the foreigners in the Republic of Bulgaria Act;• Ordinance for the Issuance of Bulgarian Personal Documents;• Ordinance establishing the terms and procedure for the issuance of visas and imposition of visa
requirements;• Tariff No. 3 for the fees, collected for consular services in the system of the Ministry of Foreign Affairs under
the state fees act;• Tariff No. 4 for the fees, collected for consular services in the system of the Ministry of Interior under the
state fees act;
Legislative Background
Legal Steps
Requirements: • Certificate for investment in Bulgaria, Visa “Type D”• Lease Agreement or Deed of Ownership of property in Bulgaria• Non-criminal record in the country of residence• Proof of funds
Steps:1. Complete Application forms for Visa Type D and relevant agreements2. Invest funds in an escrow account with a licensed Bulgarian bank or an Investment Intermediary3. Pre-approval by Bulgarian authorities and receiving of Visa Type D4. Receive a Certificate for Investment in Bulgaria5. Receive a Permanent Residence Permit 6. Annual monitoring of compliance with the requirements of the program7. Right for applying for citizenship after 5 years of having the permanent residence status
Legal Steps (2)
Permanently residing foreigners may •Work in Bulgaria in the same manner as Bulgarian citizens•Enter and leave the country without a visa, provided that they come from or go to the original country of residence
Schengen Area•At present foreign permanent residents cannot travel to EU countries only on the basis of the acquired permanent residency •Bulgaria is set to join the Schengen zone latest by the end of 2013. As a result permanently residing foreigners would be able to travel freely (without any additional visas or documents) within the Schengen zone
The Process•The existing procedures are considerably simpler than similar European programs. •The timetable for obtaining all the documents is 6-9 months
STEP 1FILE PREPARATION AND SIGNING OF ESCROW AGREEMENT WITH LICENSED BULGARIAN BANK AND AGREEMENT WITH ASSET MANAGER
STEP 2 APPOINTMENT IN A BULGARIAN CONSULATE FOR DOCUMENT PREPARATION
MONTH 1 STEP 3INVESTMENT TRANSFER BY THE MAIN APPLICANT ON ESCROW ACCOUNT IN LICENSED BULGARIAN BANK
MONTH 3
STEP 4 INVESTMENT CERTIFICATE IS ISSUED
STEP 52ND APPOINTMENT AT A BULGARIAN CONSULATE:- APPLICATION FOR VISA D
MONTH 5 STEP 6- VISA D GRANTED, FOLLOWED BY A 1st TRIP TO BULGARIA: - SUBMISSION OF APPLICATION FOR PERMANENT RESIDENCY CERTIFICATE (PRC)
MONTH 8-9
STEP 7PERMANENT RESIDENCE APPROVED, FOLLOWED BY A 2ND TRIP TO BULGARIA: - SUBMISSION OF APPLICATION FOR BULGARIAN PR CARD
STEP 8RECEIPT OF BULGARIAN PERMANENT RESIDENCY CARD (3 DAYS AFTER APPLICATION)
Legal Timetable
Investment Process
• The investment amount should be deposited with a bank under an escrow agreement
• Before pre-approval money is kept on a deposit, remaining very liquid
• After pre-approval (Visa D), Investor instructs the Investment Fund and the bank to invest the funds according to art. 24 and art. 25 from the Law for Foreigners in Bulgaria
• The choice of investment instruments depends on the risk/return preferences of the Investor
• VISA FREE EUROPE reports annually to the Ministry of Economy on compliance of the investment with the provisions of the Program
• We will guide Investors through the whole process acting on their behalf with all parties involved
VisaFreeEurope Approach
• For Investors with low risk preferences, investment in a or government bonds will be sufficient
• For Investors looking for a better risk/return profile, we offer several alternatives where attractive yields can be achieved through rigorous investment process, strong corporate governance and professional asset management
• Investments are managed by a professional management company, which acts in partnership with well established partners in a few key sectors
• The separate investment vehicles adhere to high standards of corporate governance
• The Investor may also instruct the fund manager to invest in a specific asset and we shall be responsible for the management of the asset
The Investment Structure
Real EstateInvestment Fund
Agricultural LandInvestment Fund
Alternative EnergyInvestment Fund
Low Risk Investment Fund
Private EquityInvestment Fund
Investment FundEscrow Agreement
Bank
Investor
Management Company
Investment Outlines – Real Estate
• The real estate boom in Bulgaria, interrupted by the credit crunch and ensuing economic downturn, has resulted in a large stock of real estate. Prices have plummeted with transactions occurring made below cost. This has created a very attractive investment opportunity.
• The Fund will seek to benefit from undervalued real estate by unlocking value through professional property management, relying not only on capital appreciation but strong rental yield as well.
• The Fund will partner with a few property managers, able to provide rental guarantees.
• The Fund will build a diversified portfolio of quality property assets on prime locations, seeking guaranteed yields for 3-5 years with primary focus on Sofia, Ski and Golf resorts and the Seaside. • Targeted Financial Performance
– Expected IRR on investments: ~ 35%– Expected Average IRR on portfolio: ~ 20%
Investment Outlines – Agricultural Land
• An investment in agricultural land, representing the most significant natural resource in Bulgaria, offers efficient exposure and proprietary access to an asset class that is difficult to enter directly, and represents a clear opportunity for diversification and better risk-adjusted returns over time.
• Benefits include:– Access to valuable resource: access to the primary agricultural
land within the European Union in a geographical area with very favourable natural conditions. Possible access to EU funds and grants up to 70%
– Reliable current yield: Stable and low-risk income flows arising from long-term lease agreements entered into with high quality established agricultural producers
– Capital gain potential: Strong potential for capital gains as the price of land is expected to grow considerably
• Targeted Financial Performance– Current yield: ~ 5%– Expected return on portfolio over 5 years: ~ 15%
Investment Outlines – Alternative Energy
• Alternative energy is a key asset class for the medium to long-term• Bulgaria has a well developed legislative framework and geographic
potential• The recent turmoil in the sector has created attractive investment
opportunities• The Fund will invest in a diversified portfolio of alternative energy
assets, including water, wind, solar and biomass• The Fund will invest mostly in fully operational parks, but also in such
ready for construction with high yield potential, ensuring appropriate leverage from banks and seeking comprehensive insurance coverage
• The Fund will partner with an alternative energy investors and a reputable EPC with established track record
• Targeted Financial Performance– Current yield: ~ 7%– Expected return on portfolio over 10 years: ~ 12-15%
Investment Outlines – Private Equity
• Increasing number of local companies are finding it very difficult to deal with the consequences of a deepening economic crisis in Europe. There is a sizeable opportunity to work with lenders and investors of distressed companies to help fundamentally sound businesses stabilize and grow
• The Fund will seek to benefit from bridging the gap between distressed businesses and lenders by improving the capital structure of the companies, financial restructurings and most importantly operational turnarounds
• The Fund will build a small but diversified portfolio of investments, with primary focus on companies with strong fundamentals and growth potential. Most of the investments will be sourced through close cooperation with lenders – banks and bond holders
• Targeted Financial Performance– Expected IRR on investments: ~ 35%– Expected Average IRR on portfolio: ~ 20%
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ORVITEXhttp://www.orvitex.com/English/AboutUs.aspx
RUTENBERG http://www.rutenbergrealtyny.com/
LAGUNA TOURShttp://laguna-tours.com/en/
ART’S Hotels and Residenceshttp://www.arts-hotels.com/EN/index.php
Our Partners
YAVLENAhttp://www.yavlena.com
www.lawfirm-bg.com
Bulgarian Ministry of Foreign Affairs www.mfa.bgBulgarian Ministry of Internal Affairswww.mvr.bg
Information on Investing in Bulgaria www.investbg.government.bgInformation about Bulgariawww.mybulgaria.info
Latest news: “Parliament approved lower requirements for the Bulgarian citizenship.” Mediapool.bg 13.02.2013“Lawmakers approved the investment incentives.» Capital, 13.02.2013“Permanent residency will be given for investment in the company from 1 million BGN.” Standard News Agency 14.02.2013
Our Contacts:
Stefan [email protected]
Milena ValentinovaInvestor [email protected]
18 Hristo Botev Blvd.1000, Sofia, BulgariaWebsite: www.visafreeeurope.eu
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